Context

As you know, business expenses can be claimed either on an actual basis through the production of supporting documentation or on a lump-sum basis (based on brackets) where the maximum deductible expense amounted to EUR 3,200.00 for income year 2006.

News

As previously announced by the Minister of Finance, an increase of the lump-sum business expenses that can be deducted from the taxable income had been decided.

The law and the royal decree enabling it have been published on 5 December (*) in the Official Gazette. Article 51 of the Income Tax Code is amended as follows:

- the first bracket of lump-sum business expenses increases from 25% to 26.1%, (for an income of up to EUR 4,790.00 for 2006); and
- the maximum lump-sum business expense amount is increased to EUR 3,230.00 for income of 2006.

These new amounts are applicable as from income year 2006.

The withholding tax system has been adapted accordingly (as from December 2006).

(*) http://news.hrservices.be?lk200612061